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Unusual Options Activity In Palantir

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@rollandthomas
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Palantir was the largest privately held Silicon Valley technology company backed by billionaire and Facebook’s first outside investor, Peter Thiel. Created in the aftermath of 9/11 with the aim of protecting the United States from future terror attacks, Palantir has become one of the nation’s most controversial companies. Palantir specializes in business intelligence and data-mining, much of which it does to government agencies.

The company has two product lines: Gotham and Foundry. Gotham was the first product to market and is focused on public sector customers like U.S. defense and intelligence agencies. Foundry, created later, serves similar products for private enterprises including Airbus, Credit Suisse, and BP. In 2019, 53% of Palantir’s revenue came from commercial clients, with the remaining 47% from government agencies.

Morgan Stanley analyst Keith Weiss downgraded the stock citing valuation as the company. But Keith also mentioned the company is showing no sign of slowing down either. It no wonder the Smart Money is buy up the stock via call options like the company is going out of style.

https://www.barrons.com/articles/palantir-stock-was-downgraded-last-week-its-stock-has-surged-since-then-51605813017?siteid=yhoof2

MY TRADING METHODOLOGY IN A NUTSHELL BELOW

I’m a supply and demand trader. The premise of supply and demand trading is when the market makes a sharp move up or down the large institutions i.e banks/hedge funds are not able to get their entire trade placed into the market, leaving pending orders to buy or sell at the zone with the expectation the market will return to the zone and the rest of their trading position will be filled.

I use multiple time frame (MTF) analysis to improve my discretionary trading decisions. MTF analysis involves analyzing the same asset on multiple time frames. The rule of thumb when using MFT is you want your charts to scale down/up by 4X – 6X. In my case I tend to look at:

Monthly Charts (curve time frame) – which represents that jet fighter flying over the football stadium. Weekly Charts (trend time frame) – which represents the concession stands looking down at the field. Daily Charts (entry time frame) – which represents being on the football field with the player. 4 Hr Charts (entry time frame) – which represents the center hiking the ball to the quarterback.


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